At 745 pm sg time, wall street cash (dow jones futures) up by a whopping 377 pts, EUR/USD gain by 213 pips at 1.29642/662, in the afternoon, it once breached thru' the psychological resistance of 1.3.
Major euro stock indices all rise by close to 5%, and it all because of the following news:
Brussels - French President Nicolas Sarkozy and German Chancellor Angela Merkel announced yesterday that Europe will set up an intervention mechanism to calm markets rattled by the Greek debt crisis.
The two leaders laid out a plan to defend the euro against speculators that should be in place by the time markets reopen tomorrow.
This, they said, should stave off any attack against weakened nations whose financial systems are at risk, including Spain and Portugal.
European officials declined to disclose the size of the stabilisation fund, to be made up of money borrowed by the European Union's central authorities, with guarantees by national governments.
Said Mr Sarkozy, following nine hours of emergency talks with euro zone leaders: 'The euro zone is going through the worst crisis since its creation.
'The leaders have decided to put in place a European intervention mechanism to preserve the stability of the euro zone.'
AP, AFP, Bloomberg
